MasterCard files for SEC registration
15 August 2001 | 2815 views | 0
MasterCard International has filed a registration statement with the Securities and Exchange Commission formally proposing its conversion to a private company and detailing plans for its merger with European alliance partner Europay.
The filing of the registration statement begins a process of formal review by the SEC. When that review is completed, MasterCard will seek a vote of its principal members for approval of the conversion to an incorporated company.
Robert Selander, MasterCard president and CEO, said the conversion to a private share corporation will have important long-range advantages by more closely aligning the interests of MasterCard with the interests of its members.
"We believe that converting to a stock company will give our principal members, who will become our stockholders, greater incentive to increase their business with MasterCard," he says.
Conversion will also create a more flexible structure, he adds, allowing MasterCard to respond more quickly to changing market conditions.
Selander says the integration with Europay will make for a stronger organisation: "It will bring together MasterCard’s award-winning marketing expertise and strength in e-commerce and processing technology with Europay’s particular strength in debit, chip and m-commerce."
MasterCard has had a long-standing alliance with Europay, which has exclusive licensing rights for MasterCard brands in the European region. MasterCard now owns a 12.25% share of Europay and a 15% interest in EPSS, Europay’s processing subsidiary. The European members of MasterCard, who are also shareholders of Europay, presently control approximately 7% of MasterCard International’s total votes. In addition, MasterCard and Europay each own 50% of Maestro, a leading online debit programme.